At the same time, there was not much activity from the commercials, as the financial year end is upon us and the last value date for spot trades has already past.
Forward premia continued to harden, the 12 month fwds was paid to 511/513 levels.
We suspect there might have been draw down and hedging of some large foreign currency loans and as a result, of which we have seen US dollar come under pressure in the spot but aggressively bought in the forward months.
Tomorrow being the last trading day for the financial year, we do not expect much of a trend. We expect a range between 60.00/10 and 60.40/60 on spot.
By Anindya Banerjee, analyst, Kotak Securities